Denka reports flat chloroprene rubber volumes

Tokyo – Denka Co.’s elastomers & infrastructure solutions division has reported a ‘sluggish demand’ for chloroprene rubber (CR) in fiscal year 2024, with volumes remaining on a par with last year’s levels.

For the year ended 31 March, the business segment, which includes CR production among other operations, posted a 0.3% higher sales of Yen111 billion (€685 million), while operating loss narrowed to Yen8 billion, from Yen9.3 billion reported last year.

On the cost side, the Japanese supplier said segment fixed costs increased due to inflation, while raw material prices rose for its chloroprene rubber production plant (Denka Performance Elastomer - DPE) in the US.

The Tokyo-based group announced on 13 May that it will record an extraordinary loss of Yen16.1 billion in fiscal 2024, due to an impairment loss on manufacturing facilities at its US subsidiary.

Denka said after ceasing production for regular maintenance activities, DPE had elected not to restart production at its CR manufacturing facilities for “an indefinite period.”

The  group cited “significant cost, production and other challenges” at the Louisiana site, including unexpected pollution control requirements, as the reason behind the move. (ERJ report)